3 Essential Asset Protection Strategies in Estate Planning

 Posted on October 06,2022 in Estate Planning and Probate

When you are planning how your estate property is to be distributed one day, you likely want the entirety of your estate passed on to your loved ones rather than being diminished by fees and costs. Mistakes during the estate planning process can lead to the loss of estate funds and property, affecting what will be available for your beneficiaries. There are a number of estate planning strategies geared around asset protection. Everything from the type of testamentary instrument you use to the wording of a trust can have a significant impact on your estate’s asset retention.

Asset protection may be of particular importance for those with more complex assets they are seeking to pass on, such as ownership interest in a company. It is wise to work with an experienced attorney who can help you to utilize every available asset protection tactic during the estate planning process. 

Ways to Preserve Estate Property

There are a variety of tools available in estate planning that can help you and your future beneficiaries make the most of the assets you have built up throughout your lifetime. Asset protection strategies used in estate planning may include: 

• Avoiding probate - Probate is notorious for diminishing estate assets through fees, taxes, court costs, and administration expenses. Fortunately, probate can generally be avoided by using trusts as the primary testamentary instrument. Trust property is not subject to probate and can be distributed to your beneficiaries according to your instructions almost immediately. 
• Irrevocable trusts - While the idea of a trust you cannot revoke may be a frightening concept for some, but the asset protection features of this type of trust can easily outweigh any concerns over being unable to revoke easily. You can remain your own trustee during your lifetime, so there is little loss of control associated with creating an irrevocable trust. The asset protection features work by barring creditors from seeking to collect from the trust, as no one can voluntarily reach into the trust to satisfy debts, nor can they be compelled to. 
• Business succession planning - Nothing depletes a business's assets like chaos following the passing or incapacity of a key leader. Having a strong plan for succession can keep your business running smoothly, and often, profitably. 

If asset protection is important to you, an attorney can work with you to find ways to keep your estate property safe from unnecessary depletion. 

Call a Texas Estate Planning Attorney

Geoff Mayfield, Attorney at Law is skilled in using sophisticated estate planning techniques to preserve assets. Our knowledgeable Comal County estate planning lawyers will work closely with you to determine the best ways to protect your assets. Call 210-535-0870 for a free consultation. 

Sources: 

https://www.investopedia.com/articles/retirement/07/buildawall.asp

https://www.investopedia.com/articles/wealth-management/122915/4-reasons-estate-planning-so-important.asp